The correct answer is D. Rs. 400.
The P/V ratio is the ratio of a product’s selling price to its variable cost. It is a measure of a product’s profitability. A P/V ratio of 25% means that for every Rs. 100 in sales, the company makes a profit of Rs. 25.
To calculate the selling price, we need to know the variable cost and the desired P/V ratio. The variable cost is given as Rs. 300. The desired P/V ratio is 25%.
The selling price is calculated as follows:
Selling price = Variable cost / (1 – P/V ratio)
Selling price = 300 / (1 – 0.25)
Selling price = 300 / 0.75
Selling price = 400
Therefore, the selling price of the product is Rs. 400.
Option A is incorrect because it is the variable cost. Option B is incorrect because
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